Brexit will cost the financial regulator £2.5m this year

 
Emma Haslett
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The Square Mile - London's Financial District
The FCA allocated £2.5bn of its budget to oversee Britain's departure from the EU (Source: Getty)

We all knew overseeing the finance sector as the UK withdraws from the EU will be expensive, but the Financial Conduct Authority (FCA) has finally put a price tag in it, allocating £2.5m of its budget to Brexit - and that's just for the next year.

The FCA, which published its business plan for the next year today, said the UK's withdrawal from the European Union will have "important implications".

"We have dedicated resource to co-ordinate and manage this work and are liaising closely with the Treasury and the Bank of England to ensure a smooth transfer of EU rules and legislation into the domestic framework, and ensure that the regulatory framework continues to operate without interruption following the UK’s withdrawal from the EU," it said.

The organisation said it will provide the government with technical support for the withdrawal process based on five principles:

  1. Cross-border market access
  2. Consistent global standards
  3. Co-operation between regulatory authorities
  4. Influence over standards
  5. Opportunity to recruit and maintain a skilled workforce

However, it added that the so-called Great Repeal Bill will mean most existing legislation will stay in place until the government decides otherwise.

"Existing financial regulation, much of which derives from EU legislation, remains in place until the Government and Parliament make any changes. We are also continuing with implementing the EU legislation that will come into force before the UK leaves the EU."

John Griffith-Jones, the FCA's chairman, added: "As is particularly clear this year, many of the biggest risks to markets and consumers are outside our control. International events, demographic changes, the impact of the UK’s decision to leave the EU and the course of the UK economy are just four relevant examples.

"I am regularly asked whether the FCA has enough resource and enough involvement [for Brexit]. On the former, our planning includes the mindset of doing whatever is needed to fulfil the duties required of us as the process becomes clear. On the latter, we are already making our considerable technical knowledge available to the government, and we will continue to do so throughout the process."

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